From a contract and legal point of view it would depend on the rights given per the copyright holder. From and ethical point of view, and perhaps from a legal point of view, “How can he not be misrepresenting his work and business?”

One way to challenge this without perhaps losing the client is to try to get him to sign some sort of contract which includes language that the client assumes all responsibility and asserts that they’re entitled to any copyrighted material given to you.

thanks! that's a good idea. He is trying to get some images form istock and shuttershock. I am not sure their license agreement permitted that! I will try him to use his own image.
–
SisirAug 1 '11 at 6:43